When Loyalty Hurts: The Corporate Cost of Reward-Driven Travel
By: Leigh-Ann Burroughs, Principal Advisor
At Lyndon Group, we work with clients every day to optimize their corporate travel programs and lately. In our travel practice, we’re seeing a growing challenge: loyalty-driven travel behavior that undermines policy compliance and inflates spend.
British Airways’ recent shift to a spend-based loyalty model has reignited debate across the travel community and it’s more than just a passenger problem. As more airlines follow suit, corporate travel programs are facing rising costs, increased policy violations, and shifting traveler behaviors that disrupt program efficiency.
This isn’t new, U.S. carriers adopted revenue-based loyalty years ago, but the global ripple effects are growing. Loyalty perks are no longer about miles flown, but dollars spent, which has some travelers booking late, paying more, and sidestepping corporate policy just to chase elite status.
What does this mean for travel managers?
Out-of-policy bookings are increasing
Spend is creeping up as travelers prioritize loyalty thresholds over business value
Direct bookings and preferred carrier bias are harder to manage
Dynamic redemption models add complexity to budgeting and forecasting
Many buyers are responding by adding pre-trip approval layers, flagging unusually high fares, and revisiting travel policies to explicitly state that loyalty benefits should not drive booking decisions.
But let’s be real, completely eliminating loyalty-driven behavior isn’t practical. Frequent travelers are human, and personal perks often feel like a fair trade-off for time spent on the road. The key is finding balance for your program.
Consider the below strategies:
Monitoring top routes and travelers for trends
Targeting high impact spend issues (e.g., unnecessary premium fares)
Reinforcing policy compliance while allowing some personal flexibility
Educating travelers on how loyalty and program goals can co-exist
As airline loyalty programs evolve and become harder to decode, corporate travel managers must stay agile. With unbundled fares, personalized pricing, and New Distribution Capability (NDC) offers on the rise, the next loyalty challenge may already be landing.
Need help untangling loyalty-driven spend and tightening policy compliance? Lyndon Group can help you implement practical strategies that keep your program on track without grounding traveler satisfaction.